China, India, Indonesia, Thailand are among the major economies that will positively influence the future industry growth in Asia Pacific. Government initiatives such as Digital India Programme, Bharat Net, National Optical Fibre Network (NOFN), are expected to present India as the most potential economy in the region. Similar initiatives are expected to be witnessed across other emerging economies to aid future economic growth, which will provide significant boost to the overall enterprise network LAN equipment market.
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Flexibility of LAN network allows it to cater from as few as two or three users in small offices to several hundred users in larger offices. Enterprise networking forms the basis of organization functioning, owing to the requirements for connectivity between computing devices and other electronic devices across various workgroups and departments to enable easy data accessibility. Enterprise Networking LAN equipment helps in maintaining the interoperability of systems and devices to enable internal and external data management.
Requirement to improve overall business productivity in organizations will fuel the global enterprise network LAN equipment market demands
Urbanization and growing multinational business operations across the major economies of Americas, Europe and Asia Pacific has led to increased requirement for high speed infrastructure. Moreover, advent of 100 GE switch ports for faster internet connectivity, and easy availability of 40 GE, 10GE for other medium and small scale applications are projected to provide considerable traction to the global enterprise network LAN equipment market.
The concept of utilization of any critical applications through any device or pre-approved device is stimulating the need of wired and wireless connectivity for businesses. Trends that include Bring Your Own Device (BYOD), Choose Your Own Device (CYOD) and the requirement to enable the workforce connectivity within the enterprise will attract large demands for the enterprise network LAN equipment over the forecast period.
Expansion of cloud offerings and 4G & LTE internet services would cement growth prospects
Local area network servers can be used to download and store suite of application programs that are frequently used. On demand printing and ease of files sharing over multiple devices through the network are enabled through these applications. Thus, increasing number of data centers and need for efficient machine to machine communication will fuel the market demands. Moreover, increasing organizations reliance on cloud offerings such as Infrastructure as a service (IaaS), Platform as a Service (PaaS), and Service as a platform (SaaS) along with proliferation of fast speed internet services such as 3G, 4G and 4G LTE will provide increased requirements for enterprise network LAN equipment market.
WLAN equipment are expected to witness highest demands
Owing to ease of deployments, flexible work environment, low installation costs and long term cost benefits in terms of offering mobility to the workforce are the major advantages that in turn has led high inclination of the end users. However, concerns regarding internet security and loss of data privacy will provide consistent demands for wired and passive optical networks equipment in enterprises through the forecast period.
Asia Pacific enterprise network LAN equipment market is expected to register highest growth over the forecast period
According to Coherent Market Insights, Asia Pacific (excluding Japan) Wi-Fi segment witnessed growth of close to 20% in the first quarter of 2016, with enterprise as the major end use industry. Moreover, according to our research experts, Asia Pacific IT infrastructure investments are expected to witness growth at over 4% year-on-year through the forecast period. This will help the industry participants in the region gain higher profit margins in the region
Some of the chief market participants include Alcatel-Lucent, Brocade, Avaya, Cisco, Aruba-HPE, Juniper, Ruckus, Aerohive, Juniper and NEC. Industry is majorly characterized by acquisition of SMEs by major industry players to enhance their portfolio or security offered in the solutions. For instance, in March 2015, HPE acquired Aruba to enhance its switches and routers portfolio and has plans to continue its acquisition strategy. Cisco has also adopted similar strategy and has acquired ThreatGRID, OpenDNS, SourceFire, and Lancope which were acquisitions were aimed to enhance cyber security.
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